Bio-diesel industry seeks duty sops
An apex bio-diesel industry body on Tuesday sought duty sops for manufacturing units on imported raw materials used in the fuel.
By PTI |
NEW DELHI: An apex bio-diesel industry body on Tuesday sought duty sops for manufacturing units on imported raw materials used in the fuel.
"The government should bring down duty on imported raw material used in bio-diesel for manufacturing units," Bio Diesel Producers Association Promoting Member R Mansinghka told reporters here.
The bio-diesel manufacturing facilities of 2 lakh tonnes would come up by next year in the country, he said, adding producers would need palm oil to produce bio-diesel as it is the cheapest raw material available now.
The association has submitted memorandums to Panchayati Raj Ministry, Planning Commission and Petroleum Ministry seeking such concessions.
It also asked the government to revise minimum support price formula for fixing the price of bio-diesel.
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"The cost of producing a litre of bio-diesel comes out to be Rs 45, so the Rs 25 per litre offered by the government is not feasible," Mansinghka said.Besides, he said, the marketing of bio-diesel should be left to the producers.
Presently, the government has designated 20 depots where the producers have to deliver bio-diesel, Mansinghka said.
"We should be allowed to market bio-diesel through different avenues like lube selling shops, home delivery, tyre repair shops," he said.
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It also favoured promotion of Jatropha plantation in the country. "The total installed capacity of edible oil is 22 million tonnes against existing production of 7 million tonnes. The 15 million tonnes capacity is lying idle, which could be used for producing bio-diesel," he said.Start a SIP with as low as ₹500 with ET Money App!
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